Financial Data and Key Metrics Changes - Adjusted earnings per share for the third quarter was $1.62, representing a 4% year-over-year increase [18] - Reported sales increased by 6%, while core sales grew by 1% compared to the prior year [12] - Consolidated adjusted EBITDA margins increased by 30 basis points to 23.2% compared to 22.9% in the prior year [17] Business Line Data and Key Metrics Changes - Pharma segment's core sales increased by 2%, with prescription core sales up 3% and injectables core sales up 18% [14][15] - Consumer healthcare core sales decreased by 11%, primarily due to lower sales of nasal decongestants [14] - Beauty segment reported flat core sales, with personal care core sales increasing by 13% while fragrance and skincare sales decreased by 5% [15] - Closures segment core sales decreased by 1%, with product sales up 2% but offset by lower tooling sales [16] Market Data and Key Metrics Changes - The pharma segment saw strong demand for proprietary drug delivery systems, particularly for central nervous system therapeutics and GLP-1 medications [3][14] - The beauty segment experienced revenue growth in Asia and Latin America, while sales in Europe remained flat [5] - Food and beverage markets within the closures segment saw solid growth, while personal care declined [16] Company Strategy and Development Direction - The company is focused on ongoing growth and innovation within the pharma segment, including the acquisition of Somaplast to enhance its presence in Brazil [4][5] - Investments in research and development are emphasized, with over 10% of the pharma workforce dedicated to R&D [9] - The company aims to return capital to shareholders through share repurchases and increased dividends, reflecting confidence in long-term growth prospects [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued strength in the pharma business, particularly in injectables, despite near-term headwinds in emergency medicine [20][21] - The company expects core sales growth in beauty for Q4 and positive product sales volumes for closures [22] - The outlook for 2026 indicates a potential decline in emergency medicine revenues, but overall growth in other pharma segments is expected to remain strong [24][55] Other Important Information - The company recorded a gain of approximately $27 million from the remeasurement of a previously held minority interest, impacting net income positively [12] - Atypical litigation costs of approximately $4 million were incurred, which management emphasized do not reflect the underlying operational performance [13] Q&A Session Summary Question: Can you clarify the growth expectations for 2026 in pharma? - Management reiterated that the 7% to 10% growth expectation is based on a stable, growing business with innovation, but did not provide specific guidance for 2026 [28][29] Question: What are the next steps to drive higher margins in the beauty segment? - Management indicated that volume growth, regional performance, and innovation are key to improving margins in the beauty segment [35][36] Question: How significant is the margin difference for Narcan in emergency medicine? - Management confirmed that emergency medicine products, including Narcan, have a significant margin differential compared to other products [42] Question: What is the expected impact of emergency medicine on overall growth? - Management expects emergency medicine to contribute about 5% of total sales in 2025, with a projected decline of approximately 35% in 2026 [21][49] Question: Should the depreciation and amortization expense be carried forward? - Management confirmed that the increased depreciation and amortization expense should be considered a new run rate moving forward [50]